The market is betting on rates heading higher this Wednesday. That’s bad news for mortgage shoppers. Or is it? One could argue that a rate hike on July 11 makes the fixed or variable rate decision even easier. Essentially the Bank of Canada is doing mortgage shoppers a favour. Here’s why… Closer to the Finish The higher rates go, the...
Love it or hate it, Canada’s controversial mortgage stress test has led to one welcome benefit: bigger mortgage discounts. That’s due partly to slowing demand for B-20-compliant mortgages—i.e., mortgages that require borrowers to pass the banking regulator’s “stress test,” which was adopted in January. In its latest Senior Loan Officer survey, the Bank of Canada writes, “Mortgage approval rates continued...
Here’s the latest on today’s Bank of Canada rate announcement: Rate Decision:No change in rates Prime Rate:Remains at 3.45% Market Rate Outlook:Two more hikes in 2018 BoC GDP Outlook:2% growth in 2018 and 2019; 1.8% in 2020 BoC Statement:Click here The Money Quote: “…Developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep...
It turns out, we weren’t sniffing glue by arguing that 47% of mortgages are not up for renewal this year. “Some pundits have been circulating inaccurate information recently,” National Bank Financial (NBF) said in a report Thursday. “One is the affirmation that almost half of Canadian mortgages have been or will be up for renewal this year, suggesting an imminent...
Here’s the quick and dirty on Wednesday’s Bank of Canada announcement: Rate Change:None Market Rate Outlook:Two more hikes in 2018 BoC GDP Outlook:2% growth in 2018 and 2019; 1.8% in 2020 BoC Statement:Click here The Money Quote: “…Higher interest rates will be warranted over time…Governing Council will remain cautious with respect to future policy adjustments…” Next Rate Meeting:May 30, 2018...
Your interest rate burden got no heavier today. The Bank of Canada gave floating-rate borrowers a breather by leaving its policy rate at 1.25%. Holding the Bank back were theseconcerns: NAFTA “uncertainty” “Slower than expected” Q4 GDP growth Weaker than expected “wage growth” Canadians’ “sensitivity to higher interest rates” Household credit growth that’s dropped for “three consecutive months.” Inflation, which...
RBC waited exactly three hours and 11 minutes to take advantage of the Bank of Canada’s 1/4 point rate hike today. RBC, which is typically Canada’s mortgage rate leader, boostedits prime rate by the same amount, to 3.45%. The other Big 5 banks matched its move within a few hours. Prime Time The new 3.45% prime rate takes effect tomorrow...
Not much to see at today’s Bank of Canada meeting. It was another yawner as prime rate held at 3.20%. Among the few takeaways: The Bank stated: “While higher interest rates will likely be required over time, Governing Council will continue to be cautious…” Interpreted this means: Higher rates are on their way, between now and when we die. If...
If you have a mortgage that floats withprime rate, the constant chatter about rate hikes may be unnerving. Well,now you can take a breather—because the Bank of Canadahas taken a breather. The Bank left rates alone today and hinted that future rate hikes may be further off than economic forecasts suggested. If you had to sum upits announcement today in...
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